Don’t make these mistakes! – 5 smart tips on how to take better loans

There are many pitfalls to avoid when you need to borrow money. Some are obvious (do not borrow too much, do not choose lenders at random), while others may be a little less clear. In this blog post, we present five pitfalls that are easy to avoid, only you have them in mind when you are in the process of submitting a loan application. Click here to apply for a loan for free today!

1. You take the first best offer from your regular bank 

1. You take the first best offer from your regular bank 

It may be advantageous to turn to the bank in which you have a payroll account and possibly some other commitments. At the same time, you can’t count on it and you can save a lot of money on choosing your “house bank”. The standing tip is that you turn to a loan broker who compares loan offers tailored to your wishes and your financial situation from up to 20 lenders.

2. You miss / forget to compare the effective interest rate 

2. You miss / forget to compare the effective interest rate 

If it is a private loan you want to apply for, it is extremely important that you look at the information on the effective interest rate when comparing loans. The effective interest rate includes fees, the effect of payments, etc. and thus provides a more accurate measure of what the total loan costs will be per year.

But, what about home mortgages and fast loans? For these two loan types, the effective interest rate is significantly less important. For mortgages, it only plays a very marginal role in that the loan amount is normally so large and that there are no additional costs, and for fast loans, the information on effective interest rates is basically only misleading since it is calculated on an annual basis while the loan period is considerably shorter than so.

3. You do not investigate the possibility of collecting loans 

3. You do not investigate the possibility of collecting loans 

If you already have a couple of loans, you may want to look into the chances of adding the same existing loans with the new one so that you only have to pay on one loan each month, and probably reduce the monthly costs.

4. You do not apply with co-borrowers 

4. You do not apply with co-borrowers 

If you are married or cohabiting, you can get relatively large benefits by applying with your partner as co-applicant / co-borrower. The main thing is that you can get a more advantageous interest rate and that is because the lender’s risk decreases if there are two who bear the obligation to repay.

5. You will not reduce the cost of payment 

5. You will not reduce the cost of payment 

There are normally three ways to repay loans, namely e-invoice, paper invoice and direct debit. Autorogo is the cheapest (usually completely free of charge), while e-invoice can be associated with an administration fee and paper invoice always comes with a fee. By ensuring that you do not have to pay fees, you can save a lot of money over the term of the loan.